Check out product() in the itertools module. It does exactly what you describe.
import itertools
my_list = [1,2,3,4]
for pair in itertools.product(my_list, repeat=2):
foo(*pair)
This is equivalent to:
my_list = [1,2,3,4]
for x in my_list:
for y in my_list:
foo(x, y)
Edit: There are two very similar functions as well, permutations() and combinations(). To illustrate how they differ:
product() generates every possible pairing of elements, including all duplicates:
1,1 1,2 1,3 1,4
2,1 2,2 2,3 2,4
3,1 3,2 3,3 3,4
4,1 4,2 4,3 4,4
permutations() generates all unique orderings of each unique pair of elements, eliminating the x,x duplicates:
. 1,2 1,3 1,4
2,1 . 2,3 2,4
3,1 3,2 . 3,4
4,1 4,2 4,3 .
Finally, combinations() only generates each unique pair of elements, in lexicographic order:
. 1,2 1,3 1,4
. . 2,3 2,4
. . . 3,4
. . . .
All three of these functions were introduced in Python 2.6.